Ringgit’s Risks Grow as Malaysia’s Political Angst Adds to Woes
The Malaysian ringgit is vulnerable to a drop toward last year’s low as concerns over the fragility of Prime Minister Anwar Ibrahim’s government add to the currency’s headwinds.
(Bloomberg) – The ringgit’s advance in the last two months of 2023 proved fleeting as apparent attempts to oust Anwar unnerved investors. The currency is about 3% away from a 25-year low reached in October.
The political chatter is adding to the pressure on the ringgit — emerging Asia’s worst performer last year — as Malaysia grapples with a recent slide in oil prices and falling exports. While Anwar has dismissed the alleged plots to bring down his administration, concerns over political stability prevail. The Southeast Asian country had seen four different premiers in as many years before Anwar rose to power in 2022.